Financial Sector (Shareholdings) (Qudos Mutual Ltd) Instrument 2025
I, Jim Chalmers, Treasurer, being satisfied of the matter in paragraph 14(1)(a) of the Financial Sector (Shareholdings) Act 1998, make the following instrument.
Dated 17 March 2025
Dr Jim Chalmers
Treasurer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Approvals to exceed 20% limit
5 Approval of application for transfer of business
Part 3—Related consents for transfer of business
6 Consent to voluntary transfer of business between ADIs
7 Consent to restructuring of ADIs
Part 1—Preliminary
1 Name
This instrument is the Financial Sector (Shareholdings) (Qudos Mutual Ltd) Instrument 2025.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the following:
(a) the Banking Act 1959; and
(b) the Financial Sector (Shareholdings) Act 1998; and
(c) the Financial Sector (Transfer and Restructure) Act 1999; and
(d) the Financial Sector (Transfer and Restructure) Regulations 2018.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Banking Act 1959, Financial Sector (Shareholdings) Act 1998 and Financial Sector (Transfer and Restructure) Act 1999 as appropriate and as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.
ADI (authorised deposit-taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959.
the Act means the Financial Sector (Shareholdings) Act 1998.
Part 2—Approvals to exceed 20% limit
5 Approval of application for transfer of business
(1) Under paragraph 14(1)(a) of the Act, as modified by section 8 of the Financial Sector (Transfer and Restructure) Regulations 2018, approval is granted to Bank Australia Limited (ABN 21 087 651 607) to hold more than 20% of the gross assets and liabilities of Qudos Mutual Ltd (ABN 53 087 650 557).
(2) The approval is to hold up to 100% of the gross assets and liabilities of Qudos Mutual Ltd.
(3) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.
Part 3—Related consents for transfer of business
6 Consent to voluntary transfer of business between ADIs
Under paragraph 11(1)(e) of the Financial Sector (Transfer and Restructure) Act 1999, consent is given to the transfer of business from Qudos Mutual Ltd (ABN 53 087 650 557) to Bank Australia Limited (ABN 21 087 651 607).
Note: A transfer of business is also subject to approval by APRA—see section 11 of the Financial Sector (Transfer and Restructure) Act 1999.
7 Consent to restructuring of ADIs
Under subsection 63(1) of the Banking Act 1959, consent is given to Qudos Mutual Ltd (ABN 53 087 650 557) to enter into an arrangement or agreement for the sale or disposal of its business to Bank Australia Limited (ABN 21 087 651 607).
Overview
The Financial Sector (Shareholdings) (Qudos Mutual Ltd) Instrument 2025I, made under the authority of the Treasurer, Dr. Jim Chalmers, addresses the need to regulate the transfer and restructuring of business between authorised deposit-taking institutions (ADIs) in the financial sector, specifically concerning the shareholdings of Qudos Mutual Ltd and Bank Australia Limited. Enacted in 2025, this instrument seeks to ensure that such transactions comply with existing legislative frameworks, including the Financial Sector (Shareholdings) Act 1998, the Banking Act 1959, and the Financial Sector (Transfer and Restructure) Act 1999. The policy objective is to facilitate orderly transfers and restructures within the financial sector while maintaining regulatory oversight to protect consumers and the stability of the financial system. This instrument provides the necessary approvals and consents for Bank Australia Limited to hold up to 100% of the gross assets and liabilities of Qudos Mutual Ltd and allows for the voluntary transfer of business between the two entities, subject to additional approval from the Australian Prudential Regulation Authority (APRA).
Scope and Application
The Financial Sector (Shareholdings) (Qudos Mutual Ltd) Instrument 2025 is a notifiable instrument made under the authority of the Treasurer, Jim Chalmers, pursuant to the Financial Sector (Shareholdings) Act 1998 and other related financial sector legislation. This instrument primarily concerns the approval of shareholdings and transfers of business involving specific authorised deposit-taking institutions (ADIs). Specifically, it grants Bank Australia Limited (ABN 21 087 651 607) the approval to hold more than 20% of the gross assets and liabilities of Qudos Mutual Ltd (ABN 53 087 650 557), with the approval allowing for a shareholding of up to 100%. Additionally, the instrument provides consent for the voluntary transfer of business between Qudos Mutual Ltd and Bank Australia Limited under the Financial Sector (Transfer and Restructure) Act 1999, and consent for the restructuring of ADIs under the Banking Act 1959. These provisions remain in force until repealed or otherwise revoked, and they apply to the specific entities mentioned in the instrument, extending to the Commonwealth of Australia.
Key Provisions
The Financial Sector (Shareholdings) (Qudos Mutual Ltd) Instrument 2025 introduces specific provisions governing the shareholdings and business transfers within the financial sector, particularly involving Qudos Mutual Ltd and Bank Australia Limited. Section 5 of Part 2 grants approval for Bank Australia Limited to hold more than the 20% limit of the gross assets and liabilities of Qudos Mutual Ltd, as stipulated under section 14(1)(a) of the Financial Sector (Shareholdings) Act 1998, subject to modifications by section 8 of the Financial Sector (Transfer and Restructure) Regulations 2018. This approval is capped at 100% of Qudos Mutual Ltd's gross assets and liabilities and remains in effect until repealed or revoked.
The obligations under this instrument include ensuring compliance with the stipulated shareholding limits and obtaining necessary approvals for any business transfers. Section 6 of Part 3 provides consent for the voluntary transfer of business from Qudos Mutual Ltd to Bank Australia Limited, as required under section 11(1)(e) of the Financial Sector (Transfer and Restructure) Act 1999. Additionally, section 7 grants consent for Qudos Mutual Ltd to enter into arrangements or agreements for the sale or disposal of its business to Bank Australia Limited under subsection 63(1) of the Banking Act 1959. These consents are crucial for the lawful transfer and restructuring of business within authorised deposit-taking institutions (ADIs).
Failure to comply with the provisions of this instrument may result in legal repercussions. While specific penalties are not detailed in the text, breaches of the Financial Sector (Shareholdings) Act 1998 or the Financial Sector (Transfer and Restructure) Act 1999 could lead to enforcement actions, including fines and other civil or criminal penalties as prescribed by those acts. The seriousness of the breach and the potential impact on financial stability and regulatory compliance would determine the exact nature and severity of the consequences.